ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: COM DPA/SE 10-0-0-0

HB 2049: bank deposits; technical correction

S/E: unemployment insurance; employer; limitations

Sponsor: Representative Dunn, LD 25

Caucus & COW

Summary of the Strike-Everything Amendment to HB 2049

Overview

Asserts after three years from the date the employee separates from employment, the employer of record terminates.

History

Employers are required to pay unemployment taxes on the first $8,000 in gross wages paid to each employee in a calendar year. The tax rates are based on the employers "reserve ratio". New employers are assigned a tax rate of 2% for a minimum of two years. The tax rate will vary depending on: 1) the amount of taxes paid; 2) the amount of unemployment benefits paid to former employees; 3) the average size of annual taxable payroll; and 4) the overall solvency of the Unemployment Trust Fund.

Employers who paid wages to a claimant in the base period of the claim share the costs of the benefits paid to the claimant through "charges" made to the employer's experience rating accounts. Charging an employer's account for the payment of benefits to a former employee means that the total amount of taxes paid on the account is reduced by the total amount of benefits charged to the account when the tax rate for the next calendar year is calculated (Unemployment Guide).

Provisions

1. Specifies the employer of record terminates after three years from the date the employee separates from employment. (Sec. 1)

Amendments

Committee on Commerce

1. Adopted the strike-everything amendment.

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5. HB 2049

6. Initials PRB Page 0 Caucus & COW

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